Buying A House After A Divorce Or Separation
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Please note, this page focuses solely on buying a new house following a divorce or separation. We have a separate page on remortgaging to buy out your ex.
Can I get a new mortgage for buying a house after a divorce or separation?
Assuming that you receive an income, don’t have a lot of debt, and do not have any missed payments or defaults against your name, you should be able to get a mortgage. There are mortgages available for people with some bad credit, too. Every application, however, is assessed individually.
When making an application, a lender will look at your employment history and whether you can afford the repayments. They will also consider personal details such as age and credit score, as well as assessing the property you want to buy. Every lender has different criteria and will use their own credit scoring system.
While credit scoring systems can be complex, this also means that even if you have been turned down for one mortgage, you can apply with a different lender and potentially see a different result.
Although most lenders will impose a maximum age at the end of the mortgage term, getting a mortgage to age 70 or 75 isn’t unheard of if you intend to work beyond your State Pension age.
We can help you determine which lenders may be suitable for your current situation.
How much can I borrow to buy a house after a divorce or separation?
How much you can borrow depends on your personal circumstances.
Lenders have to do a thorough assessment of your income and outgoings to arrive at a figure. This includes things like maintenance payments, nursery/school fees, and student loans, as well as credit cards and personal loans.
Every lender has a different calculator that they use, as well as different criteria that determines whether or not you are eligible. If your case doesn’t fit with one lender, it might fit with another.
If you can’t borrow a lot, you may want to consider special schemes such as Shared Ownership or Joint Borrower Sole Proprietor.
Can I get a mortgage if I still have one with my ex?
Possibly, yes.
A lot will come down to affordability. That’s a lender’s assessment of your income and outgoings to determine how much you can borrow.
If you’re still named on a residential mortgage, even if you don’t live there and aren’t making the payments yourself, you are still deemed responsible for the mortgage payments. Naturally this is likely to impact your borrowing capacity.
However, if you are going to be coming off the mortgage in the near future – for example, if the house is being sold or if your ex is remortgaging to buy you out – some lenders may ignore it. They might need the sale or remortgage to go through before your new purchase completes, so you are officially not responsible for the original mortgage anymore. You can still find a house and apply for the mortgage in the meantime.
I’m staying on the original mortgage
If you’re staying on the original mortgage then lenders may view your new purchase as a second residential. This makes things a bit more difficult.
In this instance, you’re likely to need a bigger deposit of at least 20%. The mortgage payments and living costs for both properties will be factored into the affordability assessment. That’s the case even if you won’t be paying for one property, as legally you are still liable. You would also need to budget for a higher rate of Stamp Duty.
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I’m going to get some money from the sale of the house/my ex buying me out, but I haven’t got it yet. Can I still use it as a deposit?
If you have something in writing, from a solicitor, confirming what your entitlement is, then it’s entirely possible to use it as a deposit.
Bear in mind that most mortgage offers are only valid for up to six months. If it takes longer than this for you to get the deposit monies, you might have to reapply for the mortgage. You aren’t guaranteed to get the same amount, term, or rate as before.
I moved out and my ex stopped paying the mortgage – does this impact me?
If the mortgage was in both of your names, it’s a joint liability. That means you are both equally responsible for ensuring it is paid. That’s true even if the bank account payments are made from is just in one name.
Missed payments will show on both of your credit files. Missed mortgage payments are among the most serious credit mishaps, and can have an impact on your ability to borrow for several years. Read our page on bad credit mortgages to find out more.
My ex is paying me maintenance, can that be used for a mortgage?
Usually, yes.
If a court ordered the payments, you might need to show the legal papers. Lenders may also want proof the money consistently goes into your bank.
For informal agreements, it’s important the payments come regularly. If they don’t, lenders might not include them.
You’ll likely need at least three months’ payment history. Some lenders might ask for more.
Many lenders will also look at how long the payments will last. Given that maintenance payments are typically to support children, and may only run until they turn 18, this could affect your mortgage options.
I have to pay maintenance, does that affect my chances of getting a mortgage?
Lenders see maintenance payments, whether ordered by court or not, as a regular expense. They consider this when deciding how much you can borrow.
If maintenance payments will stop soon, some lenders might not count them. You might need to show proof, like a copy of the maintenance agreement.
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What costs do I need to factor in when buying a house after a divorce or separation?
Buying a house isn’t just about the deposit. You’ll need to think about expenses like Stamp Duty, surveys, solicitors, moving costs, and new furniture (if required).
What’s more, buying by yourself means that you have to pay all of the household bills by yourself. Before you buy a new home, make sure you can afford all the bills, like energy, water, and council tax. As a single person, you may qualify for a discount on your council tax.
If paying all these bills will leave you short on cash, you may need to find ways to spend less money in other areas. Our budget planner is available for you to download.
How can The Mortgage Store Chorley help when buying a house after a divorce or separation?
When you’re getting divorced, things can feel overwhelming, especially when it comes to finances.
The Mortgage Store Chorley understands this and can offer support and guidance throughout the process. We work with you to understand your situation and find the best mortgage options available to you. With our expertise, buying a new home after a divorce or separation can feel a little less daunting.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
